The European Central Bank confirmed a Reuters report that ithas stopped providing refinancing to some Greek banks as theyare severely undercapitalized, keeping oil and other commodityprices pinned down.

The ECB move had erased an uptick in oil prices in morningtrading after U.S. data showed that domestic stockpiles rosemuch less than what an industry group reported late on Tuesday.

Uncertainty in Greece, already shaken by the inability ofpoliticians to form a government, pulled the euro to near afour-month low against the U.S. dollar while Wall Street sharplyslashed gains. That, in turn, provoked a further sell-off in oilfutures.

"The S&P 500 turned negative, deepening the weakness in thestock market on concerns about Greece and that has speeded upthe pace of oil's slide today," said Mark Anderle, broker at TACEnergy in Dallas.

At 2:30 p.m. EDT (1830 GMT), ICE Brent for June delivery traded down $59 cents at $111.65 a barrel, aftervolatile trading between $110.41 and $112.10.

The July Brent contract was down $1.76 at $109.69.

Falling for the fourth straight session, U.S. June crude settled at $92.81, down $1.17, the lowest front-monthsettlement since Nov. 2. It fell to $91.81 early, the lowestintraday since Nov. 3, and rose as high as $94.16.

Brent's premium against U.S. crude widened to more than $19,the widest since April 10.

U.S. crude was also under pressure after a weekly reportfrom the U.S. Energy Information Administration showed thatcrude stocks at the Cushing, Oklahoma, delivery point forU.S.-traded crude rose 1 million barrels to a record 45.13million barrels. CL-LCO1=R

U.S. oil prices briefly swung into positive territory,recovering from session losses of more than $2 after the EIAdata showed that crude stocks rose 2.1 million barrels lastweek, far less than the 6.6 million barrel build shown in theAmerican Petroleum Institute's report on Tuesday and closer toanalysts' forecasts.

Bigger-than-expected drawdowns in U.S. gasoline anddistillate stockpiles were seen supportive initially asfour-week average demand rose above last year's level for thefirst time this year, the EIA data showed.

But as the trading session neared the close, weakenedtechnical support prompted a flurry of selling of U.S. heatingoil and gasoline futures, said TAC's Anderle.

Also keeping oil prices lower was news that U.S. PresidentBarack Obama was expected to seek support on Saturday for otherGroup of Eight leaders for releasing strategic oil reserveslater this summer as a European Union embargo on Iranian crudecomes into effect, according to a report from the Kyodo newsagency, citing sources close to Japan-U.S. ties.